By: Luke Jones, Published on July 4, 2017 03:09 PM, Last Update on July 31, 2017 12:10 PM
Cyber insurance is a growing sector, and one expert has compared it to directors and officers liability insurance (D&O) markets 15 years ago. Matthew Davies, vice president, media and cyber liability for Chubb Canada, says cyber is something customer do not think they need, but it will soon become vital:
“People didn’t really think they needed D&O – but today it would be very unusual for an organisation with a board of directors not to purchase D&O insurance. Over time, I think cyber insurance will also become less of a discretionary buy and more of a standard purchase,” Davies told Insurance Business.
Malicious cyber-attacks driven by software viruses, ransomware, and data breaches are happening more frequently and costing companies billions of dollars each year. As the threat continues to increase, brokers are offering insurance to companies to protect their data. However, studies show many organizations remain under protected.
“Cyber is very topical at the moment,” said Davies. “A lot of business owners and boards of directors are asking their insurance brokers about cyber coverage. The insurance broker has a critical role in explaining to their customer how to mitigate cyber risk.
“Brokers also need to educate clients about the difference between adding a cyber endorsement onto an existing insurance policy - like a professional liability or a D&O policy - versus buying a fulsome stand-alone cyber offer.”